The QE Index in Qatar declined slightly by 0.1% led by losses in the industrial and insurance sectors. Regionally, most markets gained marginally except for Saudi Arabia which fell 1%. Volume on the Qatari stock exchange fell over 15% compared to the previous day. In company news, Qatar is in talks to acquire power plants in Pakistan and is well-positioned to support hosting the 2022 FIFA World Cup through its logistics infrastructure. Kahramaa held a workshop to increase cooperation with QRDI council. Qatar was also ranked among the top 10 countries in the Gulf for app development growth.
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QNBFS Daily Market Report November 21, 2021
1. Page 1 of 8
QSE Intra-Day Movement
Qatar Commentary
The QE Index declined 0.1% to close at 11,949.8. Losses were led by the Industrials
and Insurance indices, falling 0.4% and 0.3%, respectively. Top losers were Qatar
General Ins. & Reins. Co. and Qatar First Bank, falling 3.4% and 1.5%, respectively.
Among the top gainers, Inma Holding gained 3.1%, while Doha Insurance Group was
up 1.6%.
GCC Commentary
Saudi Arabia: The TASI Index fell 1.0% to close at 11,710.5. Losses were led by
the Commercial & Professional Svc and Consumer Durables & Apparel indices,
falling 1.5% and 1.4%, respectively. National Co. For Learning & Education declined
3.9%, while Sabic Agri-Nutrients Co. was down 3.8%.
Dubai: The DFM Index gained 0.1% to close at 3,265.1. The Consumer Staples and
Discretionary index rose 3.4%, while the Insurance index gained 2.4%. Amlak
Finance rose 15.0%, while Dar Al Takaful was up 7.0%.
Abu Dhabi: The ADX General Index gained 0.1% to close at 8,349.3. The
Consumer Staples and Services indices rose 1.0% each. Foodco Holding and
National Takaful Company were up 14.9% each.
Kuwait: The Kuwait All Share Index gained 0.2% to close at 7,283.4. The Energy
index rose 0.7%, while the Consumer Discretionary index gained 0.6%. Energy
House Holding Co. rose 6.8%, while Osos Holding Group Co. was up 6.1%.
Oman: The MSM 30 Index gained 0.3% to close at 4,063.9. Gains were led by the
Financial and Industrial indices, rising 0.4% and 0.1%, respectively. Muscat City
Desalination Company rose 9.6%, while Oman & Emirates Investment Holding Co.
was up 2.9%.
Bahrain: The BHB Index gained 0.2% to close at 1,791.1. The Materials index rose
0.6%, while the Consumer Staples index gained 0.5%. BMMI rose 0.7%, while
Aluminium Bahrain was up 0.6%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Inma Holding 4.66 3.1 3,500.6 (8.9)
Doha Insurance Group 1.98 1.6 68.0 42.2
QLM Life & Medical Insurance 5.05 1.0 6.7 60.3
Qatar Gas Transport Company 3.31 0.9 2,559.9 4.0
Al Meera Consumer Goods Co. 19.27 0.8 178.3 (7.0)
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Qatar Aluminium Manufacturing 1.99 (0.3) 12,777.2 105.6
Investment Holding Group 1.32 (0.2) 9,956.2 120.7
Salam International Inv. Ltd. 0.94 (0.1) 9,008.3 44.2
Gulf International Services 1.95 (0.2) 6,788.4 13.5
Ezdan Holding Group 1.56 (0.1) 5,776.5 (12.0)
Market Indicators 18 Nov 21 17 Nov 21 %Chg.
Value Traded (QR mn) 362.6 400.0 (9.3)
Exch. Market Cap. (QR mn) 690,006.4 690,583.1 (0.1)
Volume (mn) 99.3 117.6 (15.5)
Number of Transactions 8,908 7,421 20.0
Companies Traded 46 47 (2.1)
Market Breadth 21:22 13:27 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 23,655.25 (0.1) (0.8) 17.9 16.7
All Share Index 3,783.79 (0.1) (0.7) 18.3 17.2
Banks 5,083.94 (0.1) (0.6) 19.7 15.7
Industrials 4,184.42 (0.4) (0.9) 35.1 17.3
Transportation 3,556.26 0.5 (0.4) 7.9 17.7
Real Estate 1,843.92 (0.1) (1.4) (4.4) 15.8
Insurance 2,576.84 (0.3) (1.5) 7.6 15.4
Telecoms 1,062.15 0.5 0.1 5.1 N/A
Consumer 8,315.67 0.2 (0.6) 2.1 22.1
Al Rayan Islamic Index 4,894.89 (0.0) (0.8) 14.7 19.2
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Saudi Industrial Inv. Grp. Saudi Arabia 33.20 3.8 2,772.2 21.2
Ooredoo Oman Oman 0.37 2.8 73.0 (5.6)
Mouwasat Medical Serv. Saudi Arabia 168.00 2.1 41.8 21.7
Bank Al Bilad Saudi Arabia 47.00 2.1 2,436.6 65.8
Arabian Centres Co. Ltd Saudi Arabia 21.82 1.6 1,905.8 (12.9)
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Saudi Arabian Fertilizer Saudi Arabia 177.00 (3.8) 701.3 119.6
Banque Saudi Fransi Saudi Arabia 47.00 (3.7) 850.2 48.7
Sahara Int. Petrochem. Saudi Arabia 43.75 (2.6) 2,525.2 152.6
Yanbu National Petro. Saudi Arabia 68.20 (1.9) 811.6 6.7
Saudi British Bank Saudi Arabia 32.60 (1.8) 549.0 31.9
Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC
Composite Large Mid Cap Index)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Qatar General Ins. & Reins. Co. 1.97 (3.4) 2.5 (25.9)
Qatar First Bank 1.82 (1.5) 797.6 5.9
Widam Food Company 3.85 (1.3) 482.6 (39.1)
Aamal Company 1.12 (1.1) 1,288.8 30.4
Gulf Warehousing Company 4.84 (1.0) 421.8 (5.0)
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
QNB Group 21.00 0.0 75,741.2 17.8
Qatar Aluminium Manufacturing 1.99 (0.3) 25,422.7 105.6
Qatar Navigation 7.53 0.2 24,750.3 6.1
Qatar Islamic Bank 18.15 (0.8) 21,582.0 6.1
Masraf Al Rayan 4.89 0.6 18,125.0 7.9
Source: Bloomberg (* in QR)
Regional Indices Close 1D% WTD% MTD% YTD%
Exch. Val. Traded
($ mn)
Exchange Mkt.
Cap. ($ mn)
P/E** P/B**
Dividend
Yield
Qatar* 11,949.75 (0.1) (0.8) 1.6 14.5 99.4 188,578.7 16.7 1.8 2.5
Dubai 3,265.14 0.1 4.0 14.0 31.0 224.3 118,094.4 20.1 1.1 2.4
Abu Dhabi 8,349.25 0.1 0.8 6.2 65.5 502.3 398,597.8 22.8 2.5 2.7
Saudi Arabia 11,710.45 (1.0) (1.6) 0.1 34.8 1,299.3 2,745,708.2 25.8 2.5 2.2
Kuwait 7,283.41 0.2 (0.5) 2.5 31.3 199.8 139,641.4 21.7 1.7 1.9
Oman 4,063.87 0.3 1.3 (0.3) 11.1 2.6 19,034.5 11.6 0.8 3.8
Bahrain 1,791.09 0.2 0.1 2.8 20.2 4.0 28,671.1 10.0 0.9 3.5
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any)
11,940
11,960
11,980
12,000
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00
2. Page 2 of 8
Qatar Market Commentary
The QE Index declined 0.1% to close at 11,949.8. The Industrials and
Insurance indices led the losses. The index fell on the back of selling
pressure from Qatari and Arab shareholders despite buying support from
GCC and foreign shareholders.
Qatar General Ins. & Reins. Co. and Qatar First Bank were the top
losers, falling 3.4% and 1.5%, respectively. Among the top gainers, Inma
Holding gained 3.1%, while Doha Insurance Group was up 1.6%.
Volume of shares traded on Thursday fell by 15.5% to 99.3mn from
117.6mn on Wednesday. Further, as compared to the 30-day moving
average of 190.1mn, volume for the day was 47.7% lower. Qatar
Aluminum Manufacturing Co. and Investment Holding Group were the
most active stocks, contributing 12.9% and 10.0% to the total volume,
respectively.
Source: Qatar Stock Exchange (*as a % of traded value)
Ratings, Earnings Releases and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
Abu Dhabi Islamic Bank Fitch UAE LT-IDR/VR A+/bb A+/bb – Stable –
Source: News reports, Bloomberg (* LT – Long Term, IDR – Issuer Default Rating, VR – Viability Rating)
Global Economic Data
Date Market Source Indicator Period Actual
Consensu
s
Previou
s
11-18 US Department of Labor Initial Jobless Claims 13-Nov 268k 260k 269k
11-18 US Department of Labor Continuing Claims 06-Nov 2080k 2120k 2209k
11-18 US Conference Board Leading Index Oct 0.90% 0.80% 0.10%
11-19 UK UK Office for National Statistics Public Sector Net Borrowing Oct 18.0b 12.4b 19.9b
11-19 Germany German Federal Statistical Office PPI MoM Oct 3.80% 1.90% 2.30%
11-19 Germany German Federal Statistical Office PPI YoY Oct 18.40% 16.20% 14.20%
11-19 Japan Ministry of Internal Affairs and Communications Natl CPI YoY Oct 0.10% 0.20% 0.20%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 32.79% 47.85% (54,614,569.5)
Qatari Institutions 19.30% 23.14% (13,942,426.1)
Qatari 52.09% 71.00% (68,556,995.6)
GCC Individuals 0.70% 0.60% 374,545.2
GCC Institutions 3.09% 1.43% 6,009,604.2
GCC 3.79% 2.03% 6,384,149.3
Arab Individuals 8.35% 8.78% (1,559,095.3)
Arab Institutions 0.00% 0.00% –
Arab 8.35% 8.78% (1,559,095.3)
Foreigners Individuals 2.10% 2.08% 74,506.8
Foreigners Institutions 33.66% 16.11% 63,657,434.8
Foreigners 35.77% 18.19% 63,731,941.6
3. Page 3 of 8
News
Qatar
CNBC Arabia: Qatar plans to buy Pakistan infrastructure
assets – Qatar Investment Authority, the country’s sovereign
wealth fund, is in advanced talks to acquire two state-run
electric power plants in Pakistan CNBC Arabia reports, citing
two unidentified sources. QIA hired JPMorgan as adviser. Plants
owned by National Power Park; QIA could bid via a consortium
or alone. (Bloomberg)
GWCS’s expert knowledge, world-leading facilities will help
Qatar capitalize on hosting the FIFA World Cup – The
infrastructure developed by Gulf Warehousing Company
(GWCS) will help Qatar deliver a memorable FIFA World Cup in
2022, the company said. The country will host the most compact
version of the tournament in modern history. All the stadiums
are in close proximity of one another, with the longest distance
between venues just 75km, from Al Bayt Stadium in Al Khor to
Al Janoub Stadium in Al Wakrah. The stadiums and other
tournament venues, including training sites, are also in close
proximity to GWCS’s nationwide logistics infrastructure,
including numerous warehouses and vehicles, which are served
by GWCS’s state-of-the-art IT systems and thousands of
dedicated employees, who have built up relevant experience
during a host of sporting events, including the FIFA Club World
Cup, which Qatar hosted in both 2019 and 2021. In 2020,
GWCS was named as the ‘Official Logistics Provider’ for the
FIFA World Cup Qatar 2022 – an honor, which illustrates the
company’s knowledge and expertise, along with its commitment
to innovation and always delivering solutions for its clients
across the globe. To be trusted by FIFA to support its flagship
international tournament is a source of great pride for GWCS, as
explained by its chairman, Sheikh Abdulla bin Fahad bin
Jassem bin Jabor Al-Thani. (Gulf-Times.com)
Kahramaa holds workshop to increase efficiency – The
Qatar General Electricity & Water Corporation (Kahramaa) has
held a brainstorming workshop to raise the level of cooperation
and coordination between the corporation and Qatar Research,
Development and Innovation (QRDI) Council. The workshop
was held in the main building of the corporation. Cooperation
will be achieved by opening the door for constructive
discussions and using the best methods of research while
thinking about the issues and challenges being faced by
Kahramaa employees and projects, a statement noted. (Gulf-
Times.com)
Qatar among top 10 app developers in Gulf, says Strategy&
Middle East – Qatar is one among the top 10 improvers in
terms of growth in the number of apps published; suggesting
that local output in the Gulf region’s digital innovation is
increasing rapidly, according to a report of Strategy& Middle
East. Qatar witnessed the highest growth of 41% in the number
of apps published between 2010 and 2018 and was ranked
second, said the report, quoting App Annie data. "Three GCC
(Gulf Co-operation Council) countries — Qatar, the UAE, and
Saudi Arabia — are among the top 10 improvers in terms of
growth in number of apps published," the report said, adding the
GCC economies could add between $138bn and $255bn to
regional gross domestic product (GDP), depending upon how
far they advanced. As per the App Annie data, the UAE was in
the third position with it reporting 37% growth in the number of
apps published during the review period and Saudi Arabia
ranked ninth with 24% growth. (Gulf-Times.com)
Oxford Economics: Doha's FDI attractiveness remains high
– Qatar and the UAE still have the highest foreign direct
investment (FDI) attractiveness in the Gulf and the wider Mena
(Middle East and North Africa) regions, according to Oxford
Economics. The key factors behind the top scoring countries are
business environment and the quality of infrastructure, Oxford
Economics said in its latest research note. The scorecard
examines the relative FDI attractiveness of Mena economies
based on factors influencing business operability in a country
and potential domestic and export market growth. "The GCC
overall spends 4-10% of GDP on infrastructure, which is
comparable to spending by some Asian economies," it said,
adding as a result, the quality of infrastructure in the GCC is
ranked relatively high. In terms of the quality of the
infrastructure, the report forecasted Qatar's infrastructure
spending to be 10.4% of the gross domestic product by 2025
against 7.2% in Oman, 6.3% in Saudi Arabia, 4.9% in Bahrain,
4.1% in the UAE and 2.5% in Kuwait. According to the World
Bank’s Logistical Performance Index, the UAE’s infrastructure is
on a par with Singapore, with Israel, Qatar, Oman, Turkey and
Saudi Arabia not far behind. The GCC economies are likely to
continue to invest in improving their infrastructure. They have
ambitious growth and diversification plans and the financial
resources to undertake investment. The private-public
partnership (PPP) market could help support infrastructure
investment across the wider region, it said. (Gulf-Times.com)
Qatar’s rising exports – Qatar's trade surplus, which
represents the difference between total exports and imports, has
once again showed a rising trend which is a good sign for
ongoing economic recovery. The trade surplus has been rising
consistently over the past few months which demonstrate the
strength of country’s economy. According to the figures released
by the Planning and Statistics Authority, Qatar recorded a
merchandise trade surplus of QR57.8bn in the third quarter (3Q)
of this year compared to QR19.6bn in 3Q of previous year. The
rising trend in the trade surplus has also been witnessed in the
past months. The positive growth indicates that the Qatari
economy has witnessed a remarkable recovery from the
negative impacts of COVID-19 pandemic. The healthy growth in
trade surplus also demonstrates that the pace of economic
recovery in Qatar’s economy has gained strong momentum and
the recovery will continue in coming months. In the third quarter
of 2021, the value of Qatar’s total exports (including exports of
domestic goods and re-exports) amounted to QR82.6bn,
increased by QR41.5bn (101%) compared to the third quarter of
2020 which amounted total exports of QR41.1bn and increased
by nearly QR11.7bn or 16.5% compared to the second quarter
of 2021. Qatar’s foreign merchandise trade balance showed a
surplus of QR19.6bn in July 2021, reflecting an increase of
about QR13.3bn or 213.4% compared to July 2020. When
compared month-on-month, the surplus increased by nearly
QR2.6bn or 15.5% compared to June 2021. The foreign
merchandise trade balance had showed a surplus of QR19.2bn
in August 2021, showing an increase of about QR12.3bn or
177.4% compared to August 2020. (Peninsula Qatar)
Realty trading volume exceeds QR373mn during November
7-11 – The total value of real estate transactions in the sales
contracts registered with the Real Estate Registration
Department of the Ministry of Justice from November 7 to 11,
reached QR373,507,402. The types of real estate traded
included vacant lands, houses, residential buildings, a
commercial building and multi-purpose buildings. Most of the
trading took place in the municipalities of Al Rayyan, Doha, Al
Wakrah, Umm Salal, Al Da’ayen, Al Shamal, Al Khor and Al
Dhakhira. (Peninsula Qatar)
Qatar announces completion of 7th tournament-ready
venue for FIFA World Cup 2022 – Stadium 974 has been
officially unveiled and will host its first match on 30 November
when the United Arab Emirates and Syria go head-to-head on
4. Page 4 of 8
the opening day of the FIFA Arab Cup. Stadium 974 is the
seventh tournament venue to be completed by the Supreme
Committee for Delivery & Legacy (SC) and follows Khalifa
International, Al Janoub, Education City, Ahmad Bin Ali, Al Bayt
and Al Thumama in being declared ready to host matches
during the FIFA World Cup 2022, which will kick off on
November 21 next year. (Gulf-Times.com)
Formula 1 Ooredoo Qatar Grand Prix kicks off on Friday –
The Formula 1 Ooredoo Qatar Grand Prix kicked off on Friday
in Doha for a period of three days at the Losail International
Circuit with the participation of the most prominent world
champions. Losail International Circuit will host the Formula 1
championship for the first time this year and will do so for the
next ten years, starting from 2023. It will take a permanent place
on the calendar of the Formula 1 seasons, according to the
contract signed by the Qatar Motor and Motorcycle Federation
(QMMF) with Formula 1. The Qatar GP will take place from
November 19-21. On Friday, the first of three practice races will
begin at 1:30pm for a duration of one hour. A second free
practice will take place at 5pm for one hour as well. On
Saturday, the third final practice will take place at 2pm for one
hour. Qualifying for Sunday's race will be held at 5pm for a
period of one hour, which determines the drivers' starting
position. On Sunday at 5pm, the Formula 1 race will begin. They
will race for 57 laps or for two hours. (Gulf-Times.com)
Lusail Marina ready to host QNB Asia Triathlon Cup Doha
2021 next weekend – Some of the world’s top athletes will
feature in this week’s QNB Asia Triathlon Cup Doha 2021,
organizers Qatar Triathlon Federation (QTF) confirmed on
Saturday. The two-day event – with $20,000 up for grabs in
prize money - will be held at Lusail Marina where 59 athletes
from 21 countries will cover World Triathlon’s Olympic distances
in swimming, cycling and running. (Qatar Tribune)
A new air route has been opened in the direction of Almaty
– Doha – The opening ceremony of a new international flight on
the route Almaty - Doha of the Qatar Airways airline took place
today.The event was attended by Chairman of the Civil Aviation
Committee Talgat Lastayev, Deputy Akim of Almaty Serik
Kusainov, Qatar Ambassador to Kazakhstan Abdulaziz Sultan
Al-Rumayhi, Senior Vice President of Qatar Airways for Eastern
Regions Marwan Kolelait, President of Almaty Airport Alp Er
Tunga Ersoy. The flights will be operated with a frequency of 2
flights per week on Airbus A320 aircraft with a capacity of 132
seats (12 business class, 120 economy class). Passengers will
be able to use Qatar Airways' route network consisting of more
than 140 destinations via Hamad International Airport in Doha.
(Gulf-times.com)
International
US economy regaining speed as unemployment claims fall;
manufacturing surges – The number of Americans filing new
claims for unemployment benefits fell close to pre-pandemic
levels last week as the labor market recovery continues, though
a shortage of workers remains an obstacle to faster job growth.
The weekly unemployment claims report from the Labor
Department on Thursday, the most timely data on the
economy's health, also showed jobless benefits rolls declining to
a 20-month low in early November. The economy is regaining
momentum following a lull over the summer as a wave of
COVID-19 infections driven by the Delta variant battered the
nation. Initial claims for state unemployment benefits slipped
1,000 to a seasonally adjusted 268,000 for the week ended Nov.
13. That was the lowest level since the start of the coronavirus
pandemic in the United States more than 20 months ago.
Unadjusted claims dropped 18,183 to 238,850. The decrease
was led by Kentucky, likely due to automobile workers returning
to factories after temporary layoffs as motor vehicle
manufacturers deal with a global semiconductor shortage. There
were also big declines in Michigan, Tennessee and Ohio, states
that also have a strong presence of auto manufacturers.
(Reuters)
JP Morgan: US to start raising interest rates from
September 2022 – The US Federal Reserve will start raising
interest rates from September 2022, economists at the country's
biggest bank said in a 2022 outlook note. JPMorgan expects the
central bank to raise rates by 0.25% from the third quarter of
next year and keep raising them by 25 basis points every
quarter "at least until real rates are at zero," the team led by
chief economist Mike Feroli wrote. Ten-year inflation-adjusted
yields or "real yields" stood at minus 1.12% on Thursday . The
bank's forecast for the first Fed rate hike is a little more
conservative than at some rivals, such as Deutsche Bank, which
expects the first US hike as early as July 2022. Money markets
expect the first increase at a similar time. JPMorgan's
economists expect U.S. economic growth to average 3.5% in
2022, compared to 5.5% in 2021, and full employment to be
achieved by mid-2022. Inflation is also expected to slow in the
coming quarters, with core prices projected to average 2.2% by
the third quarter of 2022 compared to 4.2% in the fourth quarter
of 2021. (Reuters)
BoE's Pill sees growing case for December rate rise, but no
guarantee – Bank of England chief economist Huw Pill said the
weight of evidence was shifting towards a rise in interest rates
next month but that he had not made a decision, and markets
would do better to focus on the longer term. Speaking to
reporters at an economics conference in Bristol, Pill also
cautioned against the widespread assumption that the BoE's
first policy move would be to raise interest rates by 15 basis
points to 0.25%, as he was open to other options. The BoE
wrong-footed many investors this month when it did not lift
interest rates from their record low 0.1%, following comments
from Governor Andrew Bailey in late October which markets
interpreted as a signal that a rate rise was very near. Since
then, inflation has risen to a 10-year high of 4.2% and jobless
data has not pointed towards higher unemployment after the
end of the furlough scheme - a key concern that stayed the
BoE's hand at the start of this month. Further unemployment
data will come before the BoE's next meeting on December 16.
"The burden of proof is perhaps a little bit in the other
direction..., so now I'm looking perhaps for reasons not to hike
rates," he said. Two of the BoE's policymakers voted to raise
rates to 0.25% this month. Asked if it was safe to assume that,
whenever it came, this would be the BoE's first tightening step,
Pill said he could not confirm this. (Reuters)
UK consumers turn more confident despite inflation worries
– People in Britain turned more confident this month despite
worries about inflation and they were more willing to purchase
expensive items, according to a survey that will be welcome
news to retailers preparing for the Christmas season. The GfK
Consumer Confidence Index rose for the first time in four
months to -14 in November from -17 in October which was its
lowest level since an early-2021 coronavirus lockdown. Joe
Staton, GfK's client strategy director, said views on the economy
had improved despite rising inflation and the prospect of higher
interest rates although consumers were less buoyant about their
personal finances. The rise in GfK's measure of consumers'
propensity to make a major purchase to -3 from -10 left it 25
points higher than it was in November last year. The Bank of
England has said the rise in inflation and other squeezes on
household finances, including the end of emergency pandemic
welfare support for many households, could slow Britain's
economic recovery from the coronavirus crisis. The BoE is due
to announce on Dec. 16 whether it is raising interest rates from
5. Page 5 of 8
their all-time low after it wrong-footed many investors on Nov. 4
when it kept borrowing costs on hold despite forecasting
inflation would climb to around 5%. British consumer inflation hit
a 10-year high of 4.2% - more than double the BoE's 2% target -
in the 12 months to October, according to data published on
November 17. (Reuters)
Auction houses and clothes shoppers lift UK retail sales –
Auction houses and shoppers seeking new clothes for the
Christmas holidays lifted British retail sales last month by more
than expected, adding to recent signs that a slowdown in the
economy might have abated slightly. Retail sales volumes rose
by 0.8% month-on-month in October, the Office for National
Statistics said. A Reuters poll of economists had pointed to a
0.5% increase. Retail sales are now 5.8% above the level of
February 2020, before the COVID-19 pandemic. Auction houses
were an especially strong driver of retail sales growth in
October, the ONS said. Last month a Banksy picture by British
artist Banksy - which in 2018 was half-sliced by a shredder
concealed in its frame when it was sold at auction - fetched
18.6mn Pounds ($25.1mn) when it went back under the hammer
in the same room in London. Separate data showed the
government borrowed more than expected last month although
borrowing for the year to date is more than 100bn Pounds below
its level in April-October 2020, when the economy felt the full
force of the pandemic. With inflation surging, the BoE has said it
will raise rates in the coming months if the evidence shows
Britain's economy has not been impaired by the end of the
COVID-19 job job-protecting furlough scheme, which closed last
month. The retail sales data - and an improvement in the GfK
measure of consumer confidence this month - suggested the
economy has not worsened of late after slower-than-expected
growth in the third quarter. The ONS said clothes sales rose by
6.2% in October, helped by an early Christmas trading boost to
sales. Sports, games and toy stores also had a good month.
Separate data showed British public borrowing was higher than
expected in October at 18.8bn Pounds, 200mn Pounds lower
than a year earlier and above economists' forecasts in a Reuters
poll of a fall to 13.8bn Pounds. (Reuters)
OECD: France needs long-term spending rule to restore
finances – France needs a multi-annual spending rule to bring
its post-COVID public finances under control, the Organization
for Economic Cooperation and Development said on Thursday
as it raised its growth forecasts. The recovery of the euro zone's
second biggest economy has surpassed most expectations this
year as consumer spending bounded back following a mass
vaccination campaign. Growth is now set to reach 6.8% this
year and 4.2% in 2022, the OECD said in an in-depth report on
the French economy. It had previously penciled in forecasts of
6.3% this year and 4.0% next year. The government's support
measures for the economy during the crisis left the public
finances severely strained and debt at record levels, just as
France plans major investments to decarbonize the economy
and faces growing costs from an aging population. With public
spending already among the highest the world at nearly 60% of
GDP, the OECD said France needed a multi-annual spending
rule, which it said had a positive track record in curbing deficits
in other high spending countries like Sweden. It said that would
force the government to rationalize spending with in-depth
reviews to ensure that money is well spent, which the OECD
said was not always the case given the myriad of public bodies
at different levels. (Reuters)
Japan unleashes record stimulus package, bucking global
tapering trend – Japan unveiled a record $490bn spending
package on Friday to cushion the economic blow from the
COVID-19 pandemic, bucking a global trend towards
withdrawing crisis-mode stimulus measures and adding strains
to its already tattered finances. Spending has ballooned due to
an array of payouts including those criticized for being unrelated
to the pandemic, such as cash handouts to households with
youth aged 18 or below, and will likely lead to additional bond
issuance this year. The massive spending would underscore the
resolve of Prime Minister Fumio Kishida - once considered a
fiscal conservative -to focus on reflating the economy and
redistributing wealth to households. The package, finalized at a
cabinet meeting on Friday, included 55.7tn Yen ($490bn) in
spending for items ranging from cash payouts to households,
subsidies to COVID-hit firms and reserves set aside for
emergency pandemic spending. The size of spending was much
bigger than the 30-40tn Yen estimated by markets, and will be
mostly funded by an extra budget of around 32tn Yen to be
compiled this year. The remainder will likely be funded by next
year's budget. (Reuters)
Japan's consumer prices extend gains as fuel costs surge –
Japan's core consumer prices rose for the second straight
month in October, as fuel costs accelerated at the fastest pace
in more than a decade and pressures from raw materials
shortages gradually passed through to retailers. Consumer
inflation is expected to pick up in coming months due to higher
fuel costs, though any price rises in the country will likely be
moderate compared with other advanced economies as weak
wage growth limits firms from passing on hikes. The core
consumer price index (CPI), which excludes volatile fresh food
prices but includes fuel costs, rose 0.1% YoY in October,
government data showed. That matched the median forecast in
a Reuters poll and followed a similar rise in September, which
was the first uptick since March last year. Overall energy prices
soared 11.3% from a year earlier in October, posting their
biggest rise since September 2008, thanks largely to a jump in
fuel costs, which surged 21.4% YoY, their largest gain since
August 2008. The data will be among factors the Bank of Japan
will scrutinize at its last policy meeting of the year, scheduled for
the middle of next month. (Reuters)
China set to keep lending benchmark steady as
policymakers eye property risks – China is set to keep its
benchmark lending rate steady at its monthly fixing on Monday,
a Reuters survey showed, as policymakers seek to limit risk
taking in the property sector. A snap poll of 23 market
participants this week found 21 expected no change in either the
one-year Loan Prime Rate (LPR) or the five-year tenor at next
week's setting. That would be the 19th straight month that no
change will be made to the rate and follows the People's Bank
of China's (PBOC) decision this week to keep the interest rate
on its medium-term loans unchanged. The remaining two
respondents forecast a marginal cut of 5 basis points to the one-
year LPR and expected no change to the five-year tenor, which
influences the pricing of mortgages. The one-year LPR is
currently at 3.85% and the five-year rate is at 4.65%. The
central bank fully rolled over maturing medium-term lending
facility (MLF) due this month, keeping the borrowing cost
unchanged for the 19th straight month. The MLF serves as a
guide for the LPR and many traders and analysts say any
adjustment to the LPR should mimic changes to the borrowing
cost of MLF loans. (Reuters)
China's land sales slump for 4th month as property woes
worsen – The Chinese government's revenue from land sales
slumped for a fourth month in October compared with year-ago
levels, as cash-strapped developers moved cautiously on land
buying after tighter regulatory curbs on new borrowing. The
value of government land sales in October declined 13.14%
from a year earlier to 573.7bn Yuan ($89.90bn), after suffering a
drop of 11.15% in September, according to Reuters calculations
of data released by the finance ministry. Many developers
6. Page 6 of 8
including China Evergrande Group have grown desperately
short of cash since authorities last year unveiled the "three red
lines" - a policy of President Xi Jinping that imposes limits on
liabilities-to-assets, net debt-to-equity, and cash-to-short-term
borrowing ratios. Poor demand among developers at urban land
auctions risks squeezing regional finances, pressuring local
governments to scramble for other income to fund investment
and support the economy, including the issuance of more bonds
that increase their debt obligations, say some analysts.
(Reuters)
Regional
US again presses OPEC+ as it weighs reserve release – The
White House on Friday pressed the OPEC producer group
again to maintain adequate global supply, days after US
discussions with some of the world's biggest economies over
potentially releasing oil from strategic reserves to quell high
energy prices. The Biden administration has asked a wide range
of countries, including China for the first time, to consider
releasing stocks of crude. President Joe Biden faces slipping
approval figures as Americans cite inflation as a growing
problem. White House spokeswoman Jen Psaki said the
administration wants to "ensure that the OPEC member
countries and OPEC as an organization meets the demand
needs that are out there with the adequate supply. That is
something we've pressed them on in the past." (Reuters)
Vortexa: OPEC+ may run out of spare oil output capacity in 1
year – OPEC+’s spare oil production capacity may be used up
in the next 12 months if demand returns to 2019 levels and
producers don’t ramp up oil fields, Vortexa analyst David Wech
wrote in a note. Current spare capacity is “at best” 3mn bpd,
with as much as 2m bpd in Saudi Arabia and rest in Russia and
UAE. OPEC+ has been ramping up production and exports,
reducing spare capacity. Saudi Arabia and UAE are already
exporting ~500k bpd more than pre-Covid levels, when
comparing shipments in October and first half of November with
avg. 2019 levels. (Bloomberg)
Saudi Arabia's crude oil exports hit eight-month high in
September – Saudi Arabia's crude oil exports rose in
September for a fifth month in a row to their highest since
January, the Joint Organization Data Initiative (JODI) said on
Thursday. The kingdom's crude oil exports increased to
6.516mn bpd in September, from 6.450mn bpd in August. Total
exports including oil products stood at 7.84mn bpd. The world's
largest oil exporter's crude output rose by 100,000 bpd MoM to
9.662mn bpd in September, its highest since April 2020.
(Reuters)
Saudi Aramco, India's Reliance reevaluating oil-to-
chemicals stake purchase – Reliance Industries Limited has
said they will be reevaluating a proposal by Saudi Aramco to
acquire a stake in the Indian company's chemical business.
“Due to [the] evolving nature of Reliance’s business portfolio,
Reliance and Saudi Aramco have mutually determined that it
would be beneficial for both parties to re-evaluate the proposed
investment in O2C business in light of the changed context.
Consequently, the current application with NCLT for segregating
the O2C business from RIL is being withdrawn,” Reliance said in
a statement on Friday. The firms signed a letter of intent in 2019
for Aramco, the world’s top oil exporter, to acquire a 20% stake
of the oil-to-chemicals (O2C) business of Reliance. Reliance
said Aramco will continue to be a preferred partner for
investments in India and will work with it and SABIC for
investments in the Kingdom. (Zawya)
ONGC, Aramco sign MOU to study long term oil, Petchem
deals – Oil and Natural Gas Corp. signed a Memorandum of
Understanding with Saudi Aramco to explore long-term supply
contracts of crude oil, refined petroleum and petrochemical
products, according to a statement from India’s state-run refiner
Thursday. Both sides will also look at the demand and supply of
low carbon energy as part of this pact: statement. (Bloomberg)
World's no. 1 oil exporter lures ESG investors with green
bonds – With the biggest member of the world’s No. 1 oil cartel
readying its first-ever green bond, sustainable investors are
debating what to make of it. Saudi Arabia’s plan to enter the
market for green bonds marks a watershed moment. Some
investors say it represents an encouraging step for the oil-
addicted Gulf state to plot a path away from fossil fuels. Others
are asking for credible evidence the debt will genuinely be
green. The upshot, though, is that the biggest oil exporter on the
planet is likely to find plenty of buyers for a bond it says will be
climate friendly. Both the Saudi government itself and the
kingdom’s sovereign wealth fund are preparing to sell green
bonds in the coming months. (Bloomberg)
Saudi's Tourism Enterprises Company votes on 48% capital
reduction on December 9 – Tourism Enterprise Co.
shareholders will vote on a 48.21% capital reduction on
December 9 during an Extraordinary Assembly Meeting,
according to a bourse filing. The capital after reduction will
amount to SR52.57mn compared to SR101.5mn before
reduction, the company said in a statement on the Saudi Stock
Market (Tadawul), on Thursday. The number of shares after the
reduction is set to be about 5.26mn shares, compared to
10.15mn shares before the move. (Zawya)
Nayifat to begin trading on Saudi's Tadawul on November
22 – Nayifat Finance Co. (NFC) will begin trading on the Saudi
Exchange (Tadawul) as of Monday, November 22, according to
a bourse filing on Thursday. The stock will have +/- 30% daily
price fluctuation limits and +/- 10% static price fluctuation limits,
the company said on Tadawul. These fluctuation limits will be
applied during the first three days of listing, and from the fourth
trading day onwards, the daily price fluctuation limits will revert
to +/- 10% and the static price fluctuation limits will no longer
apply. (Zawya)
UAE September M3 money supply falls 1% YoY – The UAE's
M3 money supply fell 1% YoY in September versus -0.9% in
August, according to The Central Bank of the UAE. (Bloomberg)
UAE's Etisalat Group to acquire online grocery platform
elGrocer – UAE’s Emirates Telecommunications Group
Company (Etisalat Group) has signed an agreement to acquire
Dubai-based online grocery platform elGrocer DMCC, the
telecom operator said on Thursday. The transaction will be
funded by cash and support the company’s strategy to diversify
its product portfolio, Etisalat Group told the Abu Dhabi Securities
Exchange (ADX), where its shares are listed. “This acquisition
will support Etisalat’s digital ambitions by enriching its services,
bringing it closer to the daily lives of the consumers and
unlocking synergies that drive a diversified and integrated
product portfolio,” the disclosure said. (Zawya)
Dubai investor close to $600mn Saudi dental clinics deal –
A Dubai-based investment company is nearing a $600mn deal
to buy a majority stake in Saudi Arabia’s largest provider of
dental and dermatology care, according to people familiar with
the matter. Gulf Islamic Investments LLC., also known as GII, is
set to buy the 70% stake owned by private equity firm Jadwa
Investment Co. in Almeswak Dental Clinics, said the people,
who asked not to be identified because the information is
private. Emirati health-care company United Eastern Medical
Services owns the rest of the shares. Jadwa acquired the stake
in Almeswak in 2017, according to information on its website.
(Bloomberg)
7. Page 7 of 8
ADNOC secures $3bn loan from JBIC and four other banks
– State oil firm Abu Dhabi National Oil Company (ADNOC)
signed a $3bn loan agreement with Japan’s export credit
agency and four other lenders, the agency said on Thursday.
The Japan Bank for International Cooperation (JBIC) is
providing $2.1bn and Sumitomo Mitsui Banking Corporation
(SMBC), the Tokyo branch of HSBC, Mizuho and MUFG are
providing the rest, JBIC said in the statement. “This facility is
intended to provide necessary support to ADNOC in ensuring
stable imports of crude oil by Japanese companies,” JBIC said.
(Reuters)
Abu Dhabi's ADNOC awards $1.46bn EPC contracts for
Dalma Gas Project – The Abu Dhabi National Oil Company
(ADNOC) has awarded two engineering, procurement and
construction (EPC) contracts totaling $1.46bn for the Dalma Gas
Development Project. Abu Dhabi is looking at ways to boost its
gas output as it targets self-sufficiency in the coming decades.
As part of its integrated gas strategy launched in 2018 to
become a key exporter of natural gas in the coming years,
ADNOC is looking at new technologies to expand into
unconventional gas, tap into gas caps and unlock new
reservoirs. The two EPC contracts have been awarded to
National Petroleum Construction Company (NPCC) and a joint
venture (JV) between Técnicas Reunidas and Target
Engineering, the state-owned energy producer said in a
statement on Thursday. (Zawya)
Mubadala's new asset management subsidiary starts
operations – Mubadala, the Abu Dhabi-based sovereign
investor managing a global portfolio of assets valued at $243bn,
has announced the formal commencement of operations of
Mubadala Capital as a wholly-owned asset management
subsidiary within its Disruptive Investments portfolio.
Established in 2011, Mubadala Capital has grown significantly in
scale over the past decade, and today manages over $15bn of
assets, including over $9bn in third-party capital vehicles on
behalf of over 50 institutional investors. Mubadala Capital, which
is headquartered in Abu Dhabi and has offices in New York,
London, San Francisco, and Rio de Janeiro, comprises four
integrated businesses - private equity, public equities, venture
capital, and a Brazil focused business. (Zawya)
Abu Dhabi's Response Plus to acquire Health Tech for
AED9.8mn – Response Plus Holding, the UAE-based private
onsite medical service provider, said its board approved plans to
initiate the acquisition of 100% of Health Tech Training Center
LLC for up to AED9.8mn. The chairman of the Response Plus
Holding disclosed an ownership interest of 49% shares in Health
Tech and therefore abstained from voting on the approval, the
Abu Dhabi Securities Exchange listed Response Plus said in a
bourse disclosure. The board also approved the company's
three-year business plan. (Zawya)
Adnoc logistics, AD ports to develop new port at Ta’ziz in
UAE – Adnoc Logistics & Services and Abu Dhabi Ports signed
an agreement to develop a new port and logistics facility at
Ta’ziz, the chemicals production and industrial hub currently
under development at Ruwais in the UAE.The companies will
develop a liquids terminal and logistics facility to support tenants
of the Ta’ziz Industrial Chemicals Zone. Facility will be a critical
part of the supply chain for feedstock and will store and load
final products for export. (Bloomberg)
Fitch affirms Abu Dhabi Islamic bank at 'A+'; outlook stable
– Fitch Ratings has affirmed UAE-based Abu Dhabi Islamic
Bank's (ADIB) Long-Term Issuer Default Rating (IDR) at 'A+'
with a Stable Outlook and Viability Rating (VR) at 'bb'. Fitch has
withdrawn ADIB's Support Rating and Support Rating Floor as
they are no longer relevant to the agency's coverage following
the publication of our updated Bank Rating Criteria on 12
November 2021. (Bloomberg)
8. Contacts
QNB Financial Services Co. W.L.L.
Contact Center: (+974) 4476 6666
info@qnbfs.com.qa
Doha, Qatar
Saugata Sarkar, CFA, CAIA Shahan Keushgerian
Head of Research Senior Research Analyst
saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
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Page 8 of 8
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg (*$ adjusted returns, #
Market was closed as on November 19,2021)
60.0
80.0
100.0
120.0
140.0
160.0
Oct-17 Oct-18 Oct-19 Oct-20 Oct-21
QSE Index S&PPan Arab S&PGCC
(1.0%)
(0.1%)
0.2% 0.2% 0.3%
0.1% 0.1%
(1.5%)
(1.0%)
(0.5%)
0.0%
0.5%
Saudi
Arabia
Qatar
Kuwait
Bahrain
Oman
Abu
Dhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,845.73 (0.7) (1.0) (2.8) MSCI World Index 3,219.90 (0.2) (0.1) 19.7
Silver/Ounce 24.62 (0.8) (2.8) (6.8) DJ Industrial 35,601.98 (0.7) (1.4) 16.3
Crude Oil (Brent)/Barrel (FM Future) 78.89 (2.9) (4.0) 52.3 S&P 500 4,697.96 (0.1) 0.3 25.1
Crude Oil (WTI)/Barrel (FM Future) 76.10 (3.7) (5.8) 56.8 NASDAQ 100 16,057.44 0.4 1.2 24.6
Natural Gas (Henry Hub)/MMBtu 4.90 (1.2) 0.6 105.0 STOXX 600 486.08 (1.0) (1.5) 12.6
LPG Propane (Arab Gulf)/Ton 108.38 (3.0) (14.7) 44.0 DAX 16,159.97 (1.0) (0.9) 8.3
LPG Butane (Arab Gulf)/Ton 127.75 (2.5) (16.0) 83.8 FTSE 100 7,223.57 (0.8) (1.4) 10.2
Euro 1.13 (0.7) (1.4) (7.6) CAC 40 7,112.29 (1.0) (1.0) 18.4
Yen 113.99 (0.2) 0.1 10.4 Nikkei 29,745.87 0.7 0.4 (1.8)
GBP 1.35 (0.3) 0.3 (1.6) MSCI EM 1,269.22 (0.4) (1.3) (1.7)
CHF 1.08 (0.3) (0.8) (4.7) SHANGHAI SE Composite 3,560.37 1.1 0.5 4.8
AUD 0.72 (0.6) (1.3) (6.0) HANG SENG 25,049.97 (1.1) (1.1) (8.4)
USD Index 96.03 0.5 0.9 6.8 BSE SENSEX# 59,636.01 – (1.5) 23.0
RUB 73.48 0.5 0.8 (1.3) Bovespa 103,035.00 0.2 (5.3) (19.9)
BRL 0.18 (1.0) (2.8) (7.5) RTS 1,723.74 (2.2) (3.4) 24.2
159.5
148.5
144.1